BofI Holding, Inc., a NASDAQ Global Select Market listed holding company (and Russell 3000 Index component) for a nationwide branchless bank, BofI Federal Bank, has an extremely competitive model compared to its brick-and-mortar competition. With BofI Federal Bank providing a wide range of financing products and services over the internet via a single location at the Company HQ in San Diego, CA, operational cost is effectively minimized while the maximum yield is obtained from efforts. A diverse suite of financial services backed by some $2.1B in assets gives BofI the kind of striking distance required to fully capitalize on their highly-extensible model.
This extremely lightweight financial company structure enables the entire portfolio of offerings, from financing for single and multifamily residential, to small/medium sized business in key areas, as well as specialty finance receivables, to be transacted in a high value manner. BofI gives some of the highest interest rates on deposit products available and the products are distributed through a whole spectrum of retail channels; similarly, the Company is able to offer lower than average rates and fees on loan products, which are also made readily available via correspondent, wholesale and retail channels.
The Bank of Internet USA brand and portal is billed as America’s oldest and most trusted internet bank (https://www.bankofinternet.com/bofi), and puts all the power of a branch bank at the user’s fingertips, with the added benefit of a variety of tools and features. Privacy and security are paramount at BofI, and the Company has gone to great lengths to ensure the highest level of security, while endeavoring to constantly educate the client about the risks of identity theft in an online environment, as well as how to avoid them.
In addition to the vast array of financing choices for multifamily housing available to owners, investors and brokers through the Company’s Apartment Bank Division, BofI is able to streamline the loan, finance or re-finance process with full support from start to finish. A high degree of flexibility in multifamily lending, with loan amounts ranging from $250k-1M (outside this range negotiated on a per-case basis), reinforced by a special small balance apartment loan program (for financing under $5M), places BofI in a class of its own, even without the superiority of having a largely digital footprint.
Commercial property lending through Apartment Bank features many of the same advantages, with loans focused in the $1-3.5M range (loans outside this range again determined on a per-case basis). Custom tailored loan terms and several prepayment options allow the customer to be in total control.
BofI’s Capital Markets Division handles strategic earnings growth and balance sheet management, giving clients the kind of robust option set required to navigate dynamic market conditions:
• Bulk Loan Pool Acquisitions – having amassed over $1B of performing mortgage loans in over a decade of continuous operations; BofI is always out there, securing quality mortgage loans with an efficient purchase process
• Distressed Loan Acquisition Financing – REO and/or distressed mortgage loan acquisitions in an environment of exceptionally competitive terms and rapid closing makes BofI outshine competitors
• Structured Finance – all the benefit of ownership via a structured finance vehicle for institutions, employing securitization and participation vehicles
BofI Federal Bank is very serious about home loans and even offers a range of refinancing options, including jumbo loans up to $2M (fixed and adjustable rate, as well as interest-only) and custom tailored reverse mortgages, employing specialists to work directly with customers to help them make the best decisions possible. It is this kind of service envelope, administered via an extremely efficient architecture, that has allowed the Company to experience such profitable growth over the last several years.
Conservatively run and healthily growing profits, BofI has the core competencies, leadership and value-driven business model to sustain momentum through the shrewd leveraging of low-cost distribution channels and a strong network of affinity partners. The Company is rapidly living up to its goal of becoming the top branchless bank in the US by striving to provide products/services to its customer base that are superior to those offered by any operator in the sector, physical or virtual.
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